VICI Properties Leases Two Canadian Racetracks to Highfield Investment Group

By jili tutorial · October 1, 2026

VICI Properties Leases Two Canadian Racetracks to Highfield Investment Group: A Business Guide to the Deal

Introduction: Setting the Scene

VICI Properties, a dominant owner and acquirer of experiential real estate assets spanning gaming, hospitality, and entertainment, has formally expanded its Canadian footprint. The company announced a complex, multi-party transaction involving two major horse racing venues in Alberta.

While the headline covers the signing of a lease, the strategic maneuvering between three distinct players—VICI, Highfield Investment Group, and Century Casinos—warrants a deeper dive. This guide unpacks the transaction’s structure, explains the financial mechanisms at play, and examines what this means for the long-term future of these entertainment properties.

The Key Players and Their Strategic Roles

Understanding the transaction requires knowing what each party brings to the table and how their interests align.

VICI Properties: The Landlord and Capital Partner VICI is a major real estate investment trust (REIT) best known for owning the physical properties behind Caesars Entertainment. It does not typically operate casinos or racetracks; instead, it acquires land and buildings, then leases them to operators. This deal perfectly aligns with that passive ownership strategy. By expanding into Canada, VICI diversifies its portfolio and adds a stable, long-term cash flow stream.

Highfield Investment Group: The New Operator Highfield Investment Group is a Canadian private investment firm stepping into a significant operational role. By agreeing to a 20-year triple-net lease, Highfield gains control of two premier racing and gaming destinations without the heavy upfront cost of purchasing the land. This long tenure allows them to confidently plan major capital improvements.

Century Casinos: The Pivoting Partner Century Casinos previously owned the operating business for the racetracks. By selling these operating rights to Highfield and restructuring the real estate lease, Century Casinos successfully “deleveraged its balance sheet,” as stated by VICI’s President and COO, John Payne. This move allows Century to free up capital and reduce debt, focusing on its core properties.

The Assets: Century Mile and Century Downs

The transaction involves two distinct properties in Alberta, Canada:

Century Mile Racetrack and Casino: Located just outside Edmonton, this facility features a modern standardbred horse racing track, a casino, and extensive entertainment amenities. It serves a broad regional market.
Century Downs Racetrack and Casino: Situated near Calgary, this venue offers both thoroughbred and standardbred racing alongside gaming offerings. Both tracks are integral to Alberta’s rich horse racing culture and the provincial gaming ecosystem.

Anatomy of the Transaction: Breaking Down the Lease Agreement

This is not a simple sale. It is a strategic restructuring of operating rights and real estate ownership.

1. The Sale of the Business Century Casinos sold the operating businesses of both racetracks to a subsidiary of Highfield Investment Group. This means Highfield now controls the day-to-day operations, staff, and revenue generation.

2. The Triple-Net Lease (VICI to Highfield) VICI Properties retains ownership of the land and buildings. It signed a new 20-year triple-net lease directly with Highfield Investment Group.

What is a Triple-Net Lease? In a triple-net (NNN) lease, the tenant (Highfield) is responsible for paying the property taxes, building insurance, and routine maintenance costs on top of the base rent. This shifts the variable costs of property management from the landlord (VICI) to the operator (Highfield), making VICI’s cash flow very predictable.

3. Master Lease Adjustment (VICI to Century Casinos) VICI concurrently agreed to reduce the rent due under its existing Master Lease with Century Casinos by CAD 10.7 million. This adjustment reflects the transfer of the tenant responsibility and ensures Century is not paying for real estate it is no longer operating.

Financial Terms and Escalation Clauses

The lease contains specific financial guardrails designed to protect both parties against inflation and property degradation over two decades.

Initial Annual Base Rent: CAD 10.7 million (approximately USD 7.5 million).
Escalation Mechanism: The base rent increases annually. The increase is equal to the higher of 1.25% or the Canadian Consumer Price Index (CPI). However, this increase is capped at 2.50%.
- Example: If Canadian CPI is 3.0%, the rent increase is capped at 2.5%. If CPI is 0.5%, the floor of 1.25% applies, ensuring the rent grows minimally each year.
Capital Expenditure (CapEx) Requirements: Highfield is contractually obligated to reinvest a minimum of 1% of net revenues at each property back into the facilities every year. This ensures the tracks and casinos do not fall into disrepair over the lease term.

Strategic Implications and Industry Outlook

The long-term nature of this deal signals a strong vote of confidence in the Canadian gaming and horse racing market from a major US institutional investor.

For VICI: The company adds a 17th tenant to its portfolio, gains a foothold in a new country, and secures a stable income stream with built-in inflation protection.
For Highfield: Adrian Munro, Highfield’s president, expressed excitement about the opportunity to modernize the racetracks while maintaining a positive culture for staff and guests. The long lease and clear CapEx requirements provide a structural roadmap for this growth.
For the Industry: This deal showcases how real estate can be separated from operations to create value for all parties. The stability of a 20-year lease with a major REIT is a strong foundation for future investment.

Timeline and Closing Conditions

The transaction is not expected to close immediately. The timeline and conditions include:

Target Closing: Q4 2026 or Q1 2027.
Key Conditions: The deal is subject to standard closing conditions and regulatory approvals from provincial gaming authorities in Alberta.
Transition: During this period, Highfield will finalize its operational takeover from Century Casinos.

Conclusion

The agreement between VICI Properties and Highfield Investment Group is a textbook example of sophisticated real estate and business optimization. By breaking apart the ownership of the land from the running of the business, each involved party can focus on what it does best. For the Century Mile and Century Downs racetracks, the deal provides a stable, long-term financial structure that supports the modernization goals outlined by Highfield, ensuring these venues remain vital parts of Alberta’s entertainment landscape for years to come.

VICI Properties Leases Two Canadian Racetracks to Highfield Investment Group